pany's common stock purchased 800 of the 1,000 outstanding shares of the Farr Comdeclared dividends of for $80,000 on January 1, 2004. During 2004, the Farr Company $,000 and reported earnings for the year of $20,000. 3. Using the equity method, the investment in Farr Company on the Parr Company's books should show a balance, at December 31,2004 , of A. $89,600 B. $86,400 C. $80,000 D. $73,600 4. If, instead of using the equity method, the Parr Company uses the cost method, the balance, at December 31,2004 , in the investment account, should be A. $96,000 B. $86,400 C. $80,000